Walmart faces major India test over Flipkart’s legal spat with startup

New Delhi: An Indian startup’s legal challenge against a Walmart unit claiming losses caused by sharp discounting of its products is winning support from other online sellers, in what is shaping as a key test of how the giant retailer operates in the country.

The legal tussle between GOQii, a seller of smartwatch-type health devices, and Walmart’s Flipkart unit, comes just months after India imposed stricter rules for foreign investment in e-commerce that were aimed at deterring such sharp discounts.

GOQii sued Flipkart last month in a Mumbai court, alleging its devices were discounted by around 70% to the retail price, much more than the two sides had agreed to, legal documents related to the case showed.